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SAP ERP is an enterprise supply planning software developed by SAP SE. ERP, or Creativity Resource Planning software, is modular software designed to integrate the main functions of an organization’s core business processes into a unified system.

An ERP system consists of software components and modules, each focusing on a central company function such as finance and accounting, human resources, production, materials management or customer relationship management (CRM). Organizations only use the modules they need for their specific business.

What does SAP mean?

The original name of SAP, translated from German, was System Analysis Program Development. The letters are pronounced individually. The “SE” in the complete company name of SAP SE stands for Societas Europaea, similar to the American term “Inc.”

SAP is a multinational software provider and market leader in the field of ERP. The company currently serves more than 180 nation-states and offers on-premises, cloud, and hybrid deployment models, although cloud computing options are the focus of most of its development efforts.

What is SAP Enterprise Resource Planning?

SAP’s various ERP products allow its customers to track their business processes, including accounting, sales, production, human resources and finance, in an combined environment, with data from each element stored in a central database. Tight integration and shared data storage ensure the flow of information from one SAP ERP component to another without the need for redundant data entry and allow for the application of financial, process and legal controls.

The most widely used SAP ERP Central Component (SAP ECC) is an on-premises ERP system typically used in medium-sized and large companies.

The term “SAP ERP” was once synonymous with ECC. Today it is a collective term for all SAP.

ECC remains SAP’s lead ERP and the basis for the next-generation product, S/4HANA. Its modules are on bad terms into functional modules and technical modules. The available modules include the following:

  • Personnel management (SAP HCM)
  • Production planning (SAP PP)
  • Materials management (SAP MM)
  • Project system (SAP PS)
  • Sales (SAP SD)
  • Plant Maintenance (SAP PM)
  • Finance and Controlling (SAP FICO)
  • Quality management (SAP QM)

How does the SAP ERP system work?

SAP ECC is typically delivered in a three-tier client-server building. The three stages are the presentation tier, the application tier, and the database tier.

The presentation layer provides the user with the SAP graphical user interface (SAP GUI), which can be installed on any computer running Microsoft Windows or macOS. The SAP GUI is the communication point between the user and ECC.

The application layer is the heart of ECC. It is in charge for processing transactions, executing business logic, running reports, monitoring database access, printing documents, and communicating with other apps.

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